Swiss Stocks Fall; Transocean Slips, Clariant Advances

Dec. 27 (Bloomberg) -- Swiss stocks fell as U.S. policy
makers return to Washington in an attempt to find a solution to
the fiscal cliff and as consumer confidence in the world’s
largest economy dropped more than forecast in December.

The Swiss Market Index slipped 0.4 percent to 6,862.55 at
the close of trading in Zurich, after the Swiss market was
closed for the past three days for the Christmas holiday. The
gauge has still rallied 16 percent this year as the European
Central Bank unveiled a bond-buying program and the Federal
Reserve announced a further round of asset purchases. The
broader Swiss Performance Index lost 0.3 percent today.

“I think there is a growing realisation that we are not
going to get a market friendly outcome on the fiscal cliff
within the next few days,” said James Knightley, senior
economist at ING Groep NV in London. “This suggests risk
appetite could fade away quickly with the consumer confidence
report really highlighting the threat to the economy.”

The volume of shares changing hands today in SMI-listed
companies was 26 percent lower than the average of the last 30
days, according to data compiled by Bloomberg.

Budget Dispute

Senate Majority Leader Harry Reid said a resolution to the
U.S. budget dispute before Jan. 1 appears unlikely because
Republicans won’t cooperate.

“I don’t know time-wise how it can happen now,” Reid, a
Nevada Democrat, said on the Senate floor today. He blamed House
Speaker John Boehner and Senate Minority Leader Mitch McConnell,
both Republicans.

President Barack Obama is pressing for lawmakers to craft
an interim deal to avert more than $600 billion in tax increases
and spending cuts, known as the fiscal cliff. Republican House
leaders will hold a conference call with their rank-and-file
members today to discuss the path forward, according to a
leadership aide who asked for anonymity to discuss planning
issues.

In a letter to Congress yesterday aimed at intensifying
pressure on lawmakers to reach a deal, U.S. Treasury Secretary
Timothy Geithner said the federal debt limit will be reached on
Dec. 31 and his department will begin using “extraordinary
measures” to finance $200 billion in deficits into early 2013.

House Speaker John Boehner last week scrapped a plan he
offered to allow higher tax rates on annual income above $1
million, saying it didn’t have enough support among House
Republicans. He sent House members home that night, and no votes
are scheduled for the rest of the year.

Consumer Confidence

A report today showed that confidence among U.S. consumers
declined more than forecast in December as the budget debate in
Washington soured Americans’ outlook for the economy.

The Conference Board’s index of sentiment fell to 65.1 from
a revised 71.5 reading the prior month, figures from the New
York-based private research group showed today. The gauge was
projected to fall to 70, according to the Bloomberg survey
median.

Transocean dropped 4 percent to 40.20 francs, retreating
the most since May and posting the worst performance on the SMI.

UBS, Switzerland’s largest lender, lost 1.4 percent to
14.37 francs, contributing the most to the SMI’s decline.

Swissmetal plunged 25 percent to 1.23 francs, the biggest
slump since June 29, after the company late yesterday said its
asset sales yield a low single-digit million franc sum.

Clariant Jumps

Clariant advanced 3 percent to 12.20 francs after saying
that it sold three out of five businesses put up for disposal to
U.S. buyout firm SK Capital Partners, beating a deadline it set
for the end of 2013.

The specialty chemicals maker will get approximately 460
million francs in cash for selling the textile chemicals, paper
specialties and emulsions businesses. The deal is expected to be
completed by the end of the second quarter of 2013, it said.